Oregon ERDC Childcare Subsidy for Kinship Caregivers

Childcare Costs Hit Kinship Families Twice

If you're a grandparent or aunt who went back to work — or never stopped — to cover the costs of a child who suddenly moved in, childcare is likely your largest single expense. Oregon's Employment Related Day Care (ERDC) program subsidizes that cost on a sliding scale, and you don't need legal custody to qualify.

Who Qualifies

ERDC eligibility requires a qualifying activity: employment, job training, or education. The child must be under 13, or up to 18 if they have documented special needs or are under court supervision.

The question kinship caregivers ask most: what if I'm retired? Standard ERDC rules tie eligibility to work or training activities. Retired grandparents may qualify if they meet specific disability criteria or if childcare is necessary to preserve family stability — talk to ODHS about your situation. If you've taken any part-time work to cover the child's expenses, that employment counts.

You apply through the ODHS ONE portal (one.oregon.gov) or at a local ODHS Self-Sufficiency office. The Department of Early Learning and Care (DELC) sets policy for ERDC, but ODHS handles eligibility and enrollment.

How Copays Work

ERDC uses a sliding-scale copay based on your household income and family size. At the lower end of the income scale, the copay can be minimal — sometimes as low as $0 for the lowest-income households. As income rises, the copay increases but remains well below the full market rate for childcare.

The subsidy payment goes directly to your childcare provider, not to you. You pay only the copay portion.

Provider Options

ERDC gives you flexibility in choosing care:

• Licensed childcare centers: Preschool, daycare, and after-school programs
• Licensed family childcare homes: Smaller, home-based providers
• Uncertified relative providers: Another family member (an adult aunt, uncle, or grandparent) who passes an ODHS background check can provide paid care

That last option matters for kinship families. If your sister watches the child while you work, she can become an approved provider and receive ERDC payments — turning informal family help into compensated childcare.

The provider must be ERDC-approved; this is a separate process from ordinary childcare licensing. Your provider contacts ODHS to start the approval process.

The Waitlist — and How to Skip It

ERDC maintains a waitlist when funding is limited. But several categories of families receive priority enrollment or waitlist exemptions:

• Families receiving TANF cash assistance
• Children in active child welfare cases
• Families in relative placements exiting foster care
• Families receiving TA-DVS (domestic violence survivor assistance)

If you're already receiving TANF child-only grants for the child, mention that when you apply for ERDC — it may move you to the front of the line.

ERDC and Other Benefits

ERDC works alongside TANF, SNAP, and OHP. Receiving ERDC doesn't reduce your other benefits, and your ERDC copay is calculated independently. The combination of all four programs — TANF cash, SNAP food assistance, OHP health coverage, and ERDC childcare — covers the core expenses of raising a child.

Apply for everything through the ONE portal in a single session. You don't need separate appointments.

The Oregon Kinship Financial Help guide covers ERDC eligibility for every type of care arrangement and includes the copay calculation methodology so you know what to expect before you apply.

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